Investment Growth for LED Lighting Infrastructure in Middle East
LED lighting technology is at the verge of a vast market opportunity in the Middle East due to large investments into new buildings, public constructions and general infrastructure throughout the region.
Due to an expected GDP increase of 6% between 2013 and 2014 as well as upcoming global and monumental events such as the FIFA World Cup in 2022, infrastructure is at the heart of this growth, requiring investments in green and efficient LED lighting products.
According to the Analysis of LED Lighting Marketing in Middle East (GCC) by Frost & Sullivan, the market revenues are expected to reach $349.8 million by 2017, from $115.7 million in the year 2012.
LED Lighting Technology as Green Drive Behind Infrastructure Investments
As the population in the Middle East increases steadily and rapidly and its oil production rises, so does the demand for efficient lighting systems. Globally, the reduction of carbon footprints of geographical regions is gaining in importance and focus, especially with regards to infrastructure investments.
Additionally, investments in green infrastructure are on a steep rise in preparation for the FIFA World Cup held in Qatar in 2022. Some countries in the Middle East have banned incandescent light bulbs altogether, opening the door for the LED industry to take over as the largest and fastest growing lighting industry.
Using up to 80% less energy than conventional light bulbs at an expected lifetime far beyond what any other lighting technology has reached so far, LED technology is at the heart of large-scale infrastructure investments which are all becoming more and more environmentally conscious with a higher focus on efficiency and the lowering of energy use than ever before.
LED Lighting Prices Drop as Demand Increases
Although there were initial concerns regarding the higher investment costs of LED lighting technology as a potential barrier to LED reaching its full market potential, reports and studies now predict these costs to be decreased by up to 50% by the year 2020.
In addition to decreasing costs of investments for LED lighting technology products, public awareness and education regarding the wide range of benefits of LED usage are part of the public consciousness and further damping the initial cost barriers of large- and small-scale customers, leading to a predicted market penetration of LED technology within the coming years.
LED lighting investments are not only a signal of public awareness of the importance of environmentally friendly energy usage but also mark the beginning of a global paradigm change in which energy efficiency is at the forefront and enables significant cost-reductions and more ecomomical operations.
This is advantageous not only for the LED lighting industry itself as it opens doors to a market takeover, but also for private and corporate consumers - as prices of LED products decrease and the quality of the technology itself improves steadily, everyone wins.